Badal’s ‘bounty’ costs GMADA dear

On the directive of Badal,GMADA has bent its own policy to treat the private company at par with public limited companies for allotment of land at reserve price.

A chunk of 0.67 acre (3242.8 square yards) of prime land in Sector 79 has been allotted to HMEL,promoter of the Guru Gobind Singh Refinery Project in Bathinda,at the rate of Rs 36,000 per square yard. The land has been allotted for opening of its corporate office in Mohali.

The rate is almost three times less than what the Life Insurance Corporation (LIC) of India paid for 9.6 acres of land in Sector 49 on February 8,2008. The reserve price of the land was Rs 1 lakh per square yard. The LIC’s bid — Rs 25 per square yard extra besides the reserve price — was cleared.

Compared to the rate at which LIC was auctioned the land,GMADA has suffered a loss of over Rs 20.76 crore in accommodating the HMEL as per the wishes of the Punjab Chief Minister. The allotment was approved in the fifth GMADA meeting chaired by Badal in Chandigarh recently.

“As per CM’s directive,GMADA has decided to charge Rs 36,000 per square yard from HMEL,which is at par with the rate prescribed for public limited companies,” confirmed a senior government official,refusing to discuss the matter any further.

The HMEL,which is making the single largest investment in the refinery project,with 49 per cent equity stake of HPCL,had applied for allotment of half acre site in Mohali for official use in August 2008.

Since this private company is not covered under the category of public limited companies,which are entitled for direct allotment of land as per GMADA policy,the company’s request was referred to the CM.

The CM directed to allot the land to HMEL as per GMADA policy for public limited companies,keeping in view its major initiative of setting up the Bathinda refinery,which will create jobs,boost industrialisation and develop transport and ancillary industries in the region.

Badal also justified the HMEL’s plan to set up its corporate office in Mohali,which would ensure better coordination with the state government in Chandigarh.

In August last year,Badal had approved allotment of 1.44 acres of institutional land in Sector 69 to the Army Institute of Law (AIL) for recreational and hostel facilities at 2005 rates,causing a loss of over Rs 3.05 crore to GMADA.